Do you know the current financial status of your business? Many business owners are missing out on crucial details and reports that can impact the success of their company. You might know information about what you sell or how you connect with your customers, but you need to ensure that you understand important details regarding the financial health of the company.

Make it a point to stay up-to-date with financial tracking, and you might even consider hiring a small business bookkeeper to help with these ongoing tasks. Also, each month make sure that you can answer these questions about the financial health of your business:

How Much Money is in the Bank?

Cash in the bank matters, because the cash flow will impact your ability to pay the bills and keep your vendors happy. Make sure that you know the amount of money in your bank, and be proactive to ensure that you have plenty of cash available to cover the bill payments when they go through. For best results, you should have a monthly budget put together so that you can compare that budget with the cash in your account.

Are You Exceeding Your Break-Even Point?

Do you understand the break-even point of your company? Compare the amount of revenue that is necessary in order to cover basic bills and overhead costs. When you know your monthly costs, then you need to make sure that your income exceeds the amount that you are paying out. By learning more about your break-even point, you can prevent the dangerous situation of burning through the reserve stash of money. Failing to break even every month means that you might find yourself in debt in order to keep the company afloat.

How Profitable is Your Company?

Don’t make the mistake of waiting until the end of the year to prepare your financial reports. Instead, it is better to examine profitability on a monthly basis, so that you always have an understanding about the financial health of your company. By waiting for quarterly, half-year, or annual reports, it is possible that you might discover a problem that is too big to rectify because too much time has passed.

As you are consistent with the financial tracking within your company, you will see that this information is very beneficial to help you prevent financial disaster. If you want your business to succeed in the future, then you need to ensure that you are taking a proactive approach to stay up-to-date with the financial statistics of the company.

For more information about ongoing accounting and bookkeeping services, contact our experienced team at Easier Accounting. We are here to help: (888) 620-0770